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*** FED injects $75 Billion into market! ***

keef

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#81
man 'o man those were good times

a lot of great people and a lot of laughs,

wouldn't trade that period for anything
Fully agree there, Scorp ole buddy. Up until then most of us lived the goldbug life like some kind of lepper.

The gold bug who opened my eyes in the mid 1990s was also named Frank from Wausau, WI.

A sit down face to face with this guy would change ur whole outlook on life.

He wasn't much for laughs, real serious guy, but he did have a very inclusive library on metals that was out of this world that he would let me brouse at liesure.
 

<SLV>

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#82
One of the most vital pieces of plumbing that powers the global financial system usually runs so smoothly that it gets overlooked by market watchers. It’s the “repo market,” comprising the short-term funding that banks and financial counter-parties regularly tap to lend each other trillions.

It’s suddenly in the news again, and for all the wrong reasons. The repo market is looking a lot like it did on the precipice of the 2007 housing market crash....


An unlucky confluence of events, including an exceptionally large demand for cash from U.S. companies that needed to pay their corporate tax bills, sucked a lot of the available cash out of the financial markets. What happened last week was any counter-party in need of cash, and only holding collateral like Treasuries, agreed to pay the much higher going repo rates. That’s supply and demand, plain and simple, and it mirrors what happened in certain repo markets in 2007 before the housing crash and the Great Recession that followed.

So, what happened to the usual abundance of cash and liquid securities that powers the trillion-dollar repo market?

It’s been slowly evaporating, actually, for some time, since the Fed ended five years ago the policy of quantitative easing (QE), its maneuver to buy highly liquid bank securities to boost overall bank reserves. The thinking (and hope) of that controversial policy was that the increased liquidity would encourage banks to lend more and spur economic growth at the depths of the downturn.

Those kind of accommodative actions have been over for some time now, and total bank reserves have steadily been decreasing. They peaked in August, 2014, and are now close to where reserves were in 2011. One principle reason for that: an elevated level of government debt issuances in the past four years have sucked reserves out of the financial system...


Even though the Fed has routinely used open market operations in the past to stabilize these funding markets, it doesn’t look like a few routine interventions will be sufficient. Moreover, it’s becoming clear banks need more reserves on hand. On Friday, the Fed pledged to allow roughly two more weeks of overnight repo transactions, each injecting around $75 billion daily into the economy, the Federal Reserve Bank of New York said in a news release on Friday.


Put otherwise, the Fed is back where it was roughly a decade ago, effectively buying U.S. Treasuries from banks on an indefinite basis. But the difference this time? There’s no financial crisis in sight, just the uncomfortable fact that private capital markets once again need public support.

“For all intents and purposes, this will be equivalent to QE, with scheduled purchases of securities. We estimate that over the first year, the Fed would need to buy roughly $400bn of Treasury securities to achieve an appropriate level of reserves, plus a buffer,” the Bank of America wrote in a research note.

As plumbing problems go, this will be an expensive one to sort out.
 

keef

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#83
In 2007 it was not a 'liquidity' problem. It was a 'solvency' problem.

you just can't have a 'recession' in this highly leveraged of a financial structure without tipping the whole cake.

The 'repo' market was originally set up to balance 'the shadow banking system'.

The HUGE daily dollar amounts needed today infer 'shadow banking'. ie derivatives

This will become more obvious in hindsight. Maybe when we are at Camp Fema discussing the nights menu.
 
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keef

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#84

keef

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coming soon to a town near you.

À tout à l’heure. :p
 

Scorpio

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#88
The HUGE daily dollar amounts needed today infer 'shadow banking'. ie derivatives
we sure gave this some press awhile back,
and many have long forgotten the discussion of derivatives and hypothecation,

glad some still remember as it is incredibly important to understand IMO
 

Scorpio

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#89
Thomas Cook and Sons - been around since 1841.
perfect example of that which I speak to,

funny thing is, all of the talk will be the normal chatter of 'not keeping up with the times', zigging when they should have been jagging,

but the reality is, all a bunch of hogwash,

what they are really trying to state is any company with a lack of knowledge or willpower to play the modern game, will be lost to obscurity
 

keef

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#90
1569266988952.png
turns out these guys were the only ones to get it right.
 
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ZZZZZ

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#91
In the days before widespread use of credit cards, Thomas Cook (and others) made tons of money issuing Traveler's Cheques. You give them FRNs (or GBP, etc), they earned interest on the float until you cashed the checks, which could be weeks or months from when they were issued. I bet they made billions on checks that never got cashed.
.
.
 

Aurumag

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#92
we sure gave this some press awhile back,
and many have long forgotten the discussion of derivatives and hypothecation,

glad some still remember as it is incredibly important to understand IMO
Let us add high frequency algorithmic trading to the list shall we?

Add to that, a little bird in the know, who whispered in my ear:

BIG banks are using the blockchain to conduct billions of transactions per day, inter-bank, at no transaction cost.

The illusion of stability is only one blockchain transaction away; billions of times per day, 24x7x365.

Thus I have given up any hope of the blockchain equating to individual liberty.
 

<SLV>

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#93
Let us add high frequency algorithmic trading to the list shall we?

Add to that, a little bird in the know, who whispered in my ear:

BIG banks are using the blockchain to conduct billions of transactions per day, inter-bank, at no transaction cost.

The illusion of stability is only one blockchain transaction away; billions of times per day, 24x7x365.

Thus I have given up any hope of the blockchain equating to individual liberty.
https://www.technologyreview.com/f/...tock-exchange-is-now-in-the-bitcoin-business/
 

<SLV>

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#94

the_shootist

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#95
92,000 x $1,000,000 last night

https://www.breitbart.com/economy/2...-seek-92-billion-of-repo-funding-from-ny-fed/

"But the market started to malfunction last Monday, with the implied interest rate rising far above the Fed Funds target. Ever since, the Fed has intervened to hold the rate down. It now seems increasingly likely that this will become a permanent feature of the market."
Just the latest method of infusing more cash into the system to keep it chugging along.
 

<SLV>

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#96

Buck

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Just the latest method of infusing more cash into the system to keep it chugging along.
but:
Why won't they send it all back our way, we're where it came from?
We need it more than the bankers...
 

wallew

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#99
UH, the total will end up being $2.2 TRILLION in the next three or four months.

Youse guys should watch or listen to Glenn Beck as he covered this story back in EARLY September this year. And he explains WHY it's going to go to $2.2T!
 

ZZZZZ

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Little Susie: Mr. Wizard, what comes after "trillion?"

Mr Wizard: Can you say "quadrillion" boys and girls?
.
.
 

wallew

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Have you heard of a guy names Harry Dent?

He called that LAST recession and collapse of the housing market in 2007/2009.

He is saying that 2020/2021 is going to be way worse than what happened in 07/09. REALLY BAD.

So bad that he has already sold his Florida home.


That is Harry talking with Glenn Beck.
 

Strawboss

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He is saying that 2020/2021 is going to be way worse than what happened in 07/09. REALLY BAD.
Well - I guess it remains to be seen how long they can keep everything afloat financially - but, there is another problem brewing that might end up being a bit more important...

Food.

This years harvest is looking like its gonna be the worst in quite a long while...between the flooded fields that prevents millions of acres from being planted (and million and millions more that didnt get planted until really late) and now the blizzard that is leaving fields under heavy snow...

Not trying to sound alarmist...but, if we are the breadbasket to the world - and the breadbasket is found to have a huge hole in it...

What happens next?
 

wallew

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Well - I guess it remains to be seen how long they can keep everything afloat financially - but, there is another problem brewing that might end up being a bit more important...

Food.

This years harvest is looking like its gonna be the worst in quite a long while...between the flooded fields that prevents millions of acres from being planted (and million and millions more that didnt get planted until really late) and now the blizzard that is leaving fields under heavy snow...

Not trying to sound alarmist...but, if we are the breadbasket to the world - and the breadbasket is found to have a huge hole in it...

What happens next?
Sorry, but how about you check the Weather Channel or Weather.com... No snow predicted anywhere there for the next ten days (that would be Oct 24) and I personally doubt that there was ever a BLIZZARD in the northern part of the country for the first week of OCTOBER.

NO BLIZZARDS ANYWHERE in the central part of the country (northern or southern).

This is like the weather channel said there would be 'crushing snow in the western states in SEPTEMBER' - WHICH NEVER HAPPENED. Please stop believing this crap. Check it out before you forward an incorrect story.

This is but one of the problems. So many people forward bogus stories from social medai that NEVER happen and yet they still believe that they did. No wonder our world is in chaos.

Go listen to HARRY DENT. He called the 07/09 housing collapse and now he's calling a worse collapse than that. Like I said, he sold his home already. That's putting your money where your mouth is.

I told my dad about the 07/09 housing collapse and my dad got out of the stock market. Till the day he died he thanked me for saving him over $30k that he took out of the market. It wasn't me, it was HARRY DENT.
 
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keef

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Great advice there Wallew,
I have completely disconnected from MASS Media Hyperbole after this latest round of fake news.


Have you heard of a guy names Harry Dent?

He called that LAST recession and collapse of the housing market in 2007/2009.

He is saying that 2020/2021 is going to be way worse than what happened in 07/09. REALLY BAD.

So bad that he has already sold his Florida home.


That is Harry talking with Glenn Beck.
Haven't listened to Harry Dent in awhile, but his analysis confirms what I have been hearing from several other independent sources.

2020/2021 is as far as they can possibly kick the can from 2008/2009.

1571066334667.png


The FED is currently in panic mode and has gone "full throttle-up, Challenger" on QE4 already, although they are desperately trying to keep the public calm at the same time.

Serious members on this board need to do their last minute preps as we have seen this coming for a long, long time.

The biggest threat I see now is that the majority of people all around us are going to be 'loosing it' when reality finally sinks in and psychological/spiritual/emotional preps will be critical. The Titanic took hours to sink, and then suddenly.
 

keef

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I smell SMOKEY, hahahahahah. buh-bye fake fiat!! Long may you rot in (I wont use the H word today,, there may be ladies present)


"Complete Demise" - Neil Woodford's Flagship Equity Fund To Be Liquidated

https://www.zerohedge.com/markets/neil-woodfords-flagship-equity-fund-be-liquidated


"It could take BlackRock several months to sell the holdings of the fund as many of the investments are illiquid." ~ Neil Woodford

Burn.. baby.. BURN!
 

Silver

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Because someone sees a housing bubble they sell their house? A house is to live in, prices go up and prices go down. And what do you with the fiat in your rental? Fiat is in a bubble too.
 

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I don't see hyperinflation in the cards. I think the Fed is desperate for inflation but can't get it. Expect "Helicopter Money" to come soon... either Yang's "freedom dividend" or more "tax cuts" (refunds to people who don't pay in).
 

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many of the investments are illiquid
darn it man, we have heard this before,

always those who believe they are smarter, more clever, more informed than those that have come prior,
then they proclaim this nonsense that 'it is different this time because..........'

same with those car loans, once all the prime credits are plumb full of spanky new rides, they start moving down market for yield, eventually making it all the way down to the garbage credit types.

then while pushing this paper, they declare it is covered by their 'loss percentage risk assessments', as well as their 'robust problem resolution program' (ie they are going to repossess the thing 10 mins after default, etc)

yep, it is different this time........

until it isn't
 

TAEZZAR

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We (at least the GIMMERS who started at GoldEagle in the late 90s) always knew this was going to happen, we just didn't know when.

We still don't know when, but what is being called 'the start of the next recession' might well be 'the start of the final collapse of the world wide fiat system'.
That's the story of my life ! I have listened to this shit for 50 years, Peter Schiff is the only one that I think has a good grip on it, BUT no-one knows for sure. I knew his dad back in the days of his Las Vegas radio show, he was a huge income tax rebel, he died in federal prison.
 

keef

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Listen to yourself.

Scorp, these big Hedge Funds are illiquid because many of their 'financial assets' are marked to fantasy.

Would you buy a 1976 Chevette for $100,000,000? Guess not.

This is 2007 without Hank Paulson. should get interesting.

Remember when Jim Sinclair said, "This is it." Well, he was right, but the price of the Chevette somehow shot up about 10X since then.
 

Buck

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well put

because all of their 'financial assets' are marked to fantasy.
lots of pension funds are marked to 'fantasy' also, hmmmm...i wonder if they're the same fantasy?
 

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Check it out before you forward an incorrect story.

This is but one of the problems. So many people forward bogus stories from social medai that NEVER happen and yet they still believe that they did. No wonder our world is in chaos.
Uh - I was actually referencing a warning that was issued by NOAA. An inadvertent warning as it turns out...

https://kwwl.com/news/top-stories/2...alse-blizzard-warning-for-some-iowa-counties/

And then there is this news of the devastation of North Dakota's crops from...snow...

https://www.benzinga.com/news/19/10/14590482/plains-snowstorm-breaks-records-kills-crops
 
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keef

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well put



lots of pension funds are marked to 'fantasy' also, hmmmm...i wonder if they're the same fantasy?
Hypertiger mentioned two things to watch out for right before the final collapse:

1) Investors searching for yield. This has been happening with negative interest bonds. Hedge funds had to take on 'risky' investments to show yield and of course dumb ass fund managers for the pension funds bought these dogs left and right.

2) Beat the dead horse. This is the last phase and I would say we are already moving into it. Workers/producers will now be beat for their last ounce of wealth production. Countries who refuse to accept our fiat will be first to go.

So far, we have enough military in the ME to extort their oil and continue to back the dollar. That's why we cant leave the ME. We extort countries to accept our fiat. That's why most of us live way above our means and are about to find out what the meaning of 'cold turkey' is all about.

I already see the signs on this forum. Detox is a very painful process, much more painful than anyone who hasn't been through it can imagine.

You either detox and recover or OD. If you think I am lying, just watch these next 12-18 months.
 

TAEZZAR

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Because someone sees a housing bubble they sell their house? A house is to live in, prices go up and prices go down. And what do you with the fiat in your rental? Fiat is in a bubble too.
The number one survival tool is:
If you are over 50, you should have your home free & clear, except for the immoral property tax.
Then comes all else, JMHO
You mention "rental" as in landlord? Do you think a rental property, multi- units if possible, is as good as PM's? People will always need shelter, I would think rental properties would be a good investment for any time.
 

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Except during rent control.
The number one survival tool is:
If you are over 50, you should have your home free & clear, except for the immoral property tax.
Then comes all else, JMHO
You mention "rental" as in landlord? Do you think a rental property, multi- units if possible, is as good as PM's? People will always need shelter, I would think rental properties would be a good investment for any time.
 

Ebie

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Haven't listened to Harry Dent in awhile, but his analysis confirms what I have been hearing from several other independent sources.
2020/2021 is as far as they can possibly kick the can from 2008/2009. coming for a long, long time.
The biggest threat I see now is that the majority of people all around us are going to be 'loosing it' when reality finally sinks in and psychological/spiritual/emotional preps will be critical. The Titanic took hours to sink, and then suddenly.
Will the precious metals drop in price again?
 

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This market is completely propped up by stock buy-backs. All of those Trump corporate tax cuts are fueling the corporate shopping spree so that they can continue to show growing EPS. The EPS is growing not because of more E, but because of fewer S. It is the illusion of economic expansion when it is really total shares outstanding contraction.

https://www.zerohedge.com/markets/w...ged-curve-inverted-rising-deposit-costs-sting

1571166189743.png
 

keef

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Will the precious metals drop in price again?
I don't want to tell you what I think is going to happen to metals. Thats a personal decision now.

My best guess is that they will continue to go up, until they are seized and all metal trading is made illegal.